New data shows the Brazilian economy has shrunk for the first time since 2009 after the Latin American country's GDP contracted in the third quarter of the year.
Figures released today (December 3rd) by the Instituto Brasileiro de Geografia e Estatistica (IBGE) confirmed the economy was 0.5 per cent smaller between July and September.
With analysts having predicted a contraction of 0.2 per cent for the quarter, concerns could grow over the future of the country's economy.
Brazil had coped better than most nations during the global economic crisis and had expected to go from strength to strength in the coming years, with the country hosting the Fifa World Cup next year and the Olympic Games in 2016.
Flavio Serrano, an economist at Espirito Santo investment bank, previously predicted growth of 2.5 per cent for the year, but has now lowered his forecast to 2.2 per cent or 2.3 per cent.
"It shows that we were not able to grow despite various economic stimulus measures," he added.
Brazil is currently making large investments in its infrastructure to get ready for the Olympics and the World Cup and the country recently increased interest rates to combat inflation.
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